Absorption refers to
A)the total amount of imports purchased by a country.
B)the net amount of imports purchased by a country.
C)total spending by domestic residents, businesses, and governments.
D)GDP less desired consumption, desired investment, and government purchases.

Question

Quizplus · Accepted Answer

Absorption refers to the total spending by domestic residents, businesses, and governments in a country, including consumption, investment, and government purchases. It is an important component of a country's GDP. Options A and B refer to only the imports, whereas option D refers to GDP after subtracting certain components.

Absorption Refers to